MSE News: 'Don't take mortgage SVR hikes lying down'

originalmiscellany

Well said Wulliam

Credit-Crunched

All KFI documents now show you what a 1% hike in rates would do to your mortgage, the OFFER that is put fowward to you is just that, an offer of money if you decide that the terms and conditions of the offer are acceptable to you.

As a responsible adult you must think, if my VARIABLE rate mortgage were to go up, could I handle it, if no then do not accept the offer and consider a smaller mortgage or larger deposit.

I have no sympathy for these people who have been sat on near zero interest rates.

I benefited from very low SVR, mine has gone up, however I kept my mortgage payment as per original fixed rate and as such have made HUGE inroads into my capital balance, reducing my LTV allowing more desirable rates going forward.

MSE does give a lot of great advice and ideas to people, but this CONSTANT berating of banks is getting a little tiresome. People need to start taking responsibility of their actions, growing up financially and not throw their toys out of the pram when things do change in an ever unstable market.

Budget, budget and budget.

nickco

Bank of Scotland increased their rate from 4.84% to 4.95% last November.

Comparisons with high rates of the 1980s aren't that relevant. Borrowers then generally had lower multiples of income borrowed, MIRAS absorbed some of the costs and high inflation was eroding the real cost of the debt.

ILW

nickco wrote: »

Bank of Scotland increased their rate from 4.84% to 4.95% last November.

Comparisons with high rates of the 1980s aren't that relevant. Borrowers then generally had lower multiples of income borrowed, MIRAS absorbed some of the costs and high inflation was eroding the real cost of the debt.

Inflation was not particularly high in the 90s when rates hit 14% or so.

Thrugelmir

nickco wrote: »

Bank of Scotland increased their rate from 4.84% to 4.95% last November.

Comparisons with high rates of the 1980s aren't that relevant.

Rates were higher than this in 2007. People have short memories.

Joe_Bloggs

ILW said:-

Inflation was not particularly high in the 90s when rates hit 14% or so.

I find ones memory, hearing and appreciation of facts become selective after a time.
J_B.

ILW

Joe_Bloggs wrote: »

ILW said:-

I find ones memory, hearing and appreciation of facts become selective after a time.
J_B.

At its peak in 1990, inflation was 10% and IRs were 15.

Equivalent to a 10% base rate now.

By 1993 inflation was around 1% with base rates around 6.

Joe_Bloggs

ILW wrote:-

At its peak in 1990, inflation was 10% and IRs were 15.

Equivalent to a 10% base rate now.

By 1993 inflation was around 1% with base rates around 6.

Why are 15% base rates in 1990 Equivalent to 10% base rates in 2012 ? Is there some calculation to transform the data to present times?

J_B.

ILW

Joe_Bloggs wrote: »

ILW wrote:-
Why are 15% base rates in 1990 Equivalent to 10% base rates in 2012 ? Is there some calculation to transform the data to present times?

J_B.

Base 5% above inflation.

Joe_Bloggs

What is inflation today ? What was inflation then ? Where does the 5% correction factor come from.
J_B.